Asked by Shayan Patel on Jul 13, 2024

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Securities traded in the stock exchanges are primary market transactions as the sales proceeds go to the issuing companies.

Primary Market Transactions

Deals that occur in the primary market, where new securities are issued and sold by companies or governments directly to investors, raising capital.

Stock Exchanges

Marketplaces where securities, such as stocks and bonds, are bought and sold by investors.

Issuing Companies

Companies or entities that offer securities, such as stocks or bonds, to the public for the purpose of raising capital.

  • Differentiate between the primary and secondary securities markets.
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FM
Fatin MiraaJul 14, 2024
Final Answer :
False
Explanation :
Securities traded in the stock exchanges are secondary market transactions, as investors are buying and selling securities from one another, and the sales proceeds do not go directly to the issuing companies. The primary market is where initial public offerings (IPOs) take place, and the proceeds go to the companies issuing the securities.